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Franking Account & Excess Franking Credits

Devotee

Views 144

Replies 2

Hi pls assist me on the below if possible.

 

A company receives a franked dividend distribution and the franking credit is recorded in the franking account (CR ).

 

These franking credits eventually result in a excess frnaking credits and the excess is converted to a tax loss and c/f.

 

Are any adjustments required to the amount of franking credits already recorded in the franking account ? 

 

Many thanks.

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 1

A company receives a franked dividend distribution and the franking credit is recorded in the franking account (CR ).

 

These franking credits eventually result in a excess frnaking credits and the excess is converted to a tax loss and c/f.

 

Are any adjustments required to the amount of franking credits already recorded in the franking account ? 

 

Credit to franking account when dividend received  -  loss treatment does not change that.

 

2 REPLIES 2

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 1

A company receives a franked dividend distribution and the franking credit is recorded in the franking account (CR ).

 

These franking credits eventually result in a excess frnaking credits and the excess is converted to a tax loss and c/f.

 

Are any adjustments required to the amount of franking credits already recorded in the franking account ? 

 

Credit to franking account when dividend received  -  loss treatment does not change that.

 

Devotee

Replies 0

Hi @Bruce4Tax  thank you